Abu Dhabi offshore entities to be combined

Abu Dhabi’s two offshore oil and gas companies will be restructured and combined under the umbrella of a new entity, Abu Dhabi National Oil Company (Adnoc) said on Tuesday.

As part of the consolidation effort, Abu Dhabi Marine Operating Company and Zakum Development Company, better known as Adma-Opco and Zadco, respectively, will be merged in an effort “aimed at capitalising on synergies to drive operational efficiency and maximise value,” according to Adnoc, which is the majority shareholder (60%) in both ventures.

The restructuring process, scheduled for completion by early 2018, will be co-ordinated by a steering committee. In the meantime, Adma-Opco CEO Yasser Al Mazrouei will lead the two entities. Committee members include executives from Adnoc’s partners in the Adma-Opco and Zadco concession areas. For the latter they are ExxonMobil and Japan Oil Development Company. Shareholders in Adma-Opco are BP, Total and Japan Oil Development Company.

“The new company resulting from this integration will be more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth,” Adnoc said.

At the end of June, the UAE leadership announced it would be merging Abu Dhabi’s two investment funds, the International Petroleum Investment Company (IPIC) and Mubadala Development Company.